State Tax Service is working to find new mechanisms to further simplify tax administration for business affected by the war. And it is ready to develop real practical solutions together with business.

This was informed by acting Head of the State Tax Service, Lesya Karnaukh during the meeting with representatives of the Federation of Employers of Ukraine, headed by Chairman of the Council Dmytro Oliynyk. According to the FEU, in August alone, 42 enterprises that are part of the Federation have suffered from russian attacks. And it is logical that business is asking how they can survive further.

“Destroyed production is not just destroyed walls or equipment. Behind each production there are people, years of titanic work, jobs, salaries and taxes from which state needs are financed. This is what existence of the country and our defense depend on” – she stated.

Lesya Karnaukh emphasized that entrepreneur should not be left alone with problems. State Tax Service is always ready to connect and provide maximum assistance to those who have suffered from enemy attacks.

Today, support mechanisms are already in place. Order of the Ministry of Finance № 225 provides for the possibility of confirming impossibility of fulfilling tax obligations due to the war consequences. Exemption from land payments, tax on damaged/destroyed real estate, number of other tax benefits and preferences are provided.

Anyone who has suffered, if necessary, can contact the Tax Service in regions or Tax Consultant Offices to receive clear recommendations.

“Despite this, we are looking for additional mechanisms to further simplify tax administration for business that have suffered from the war. We are actively meeting with business to hear their suggestions. We need to work out joint solutions directly with business” – Lesya Karnaukh said.

At the same time, Lesya Karnaukh emphasized that looking for a solution to support destroyed business, it is necessary to maintain a balance – to protect interests of both business and the state.

“Another important aspect. Support for affected enterprises must be protected from abuse. It is important to prevent situations where, under the guise of restoring destroyed business, shadow schemes are restored or created” – she added.

A number of other important topics were also discussed: un-shadowing the economy, countering business fragmentation schemes, combating illegal market, particularly in the excisable products sphere and conducting tax audits.

“My clear position: business that operates legally, pay salaries and taxes during the war, should not lose to those who work in the shadows or use schemes. Control should focus on risks, and not create additional pressure on conscientious payers. Our task is to help business survive, recover and continue to work” – emphasized acting Head of the State Tax Service.